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Share of agriculture & allied sector in State Plan rises to Rs 22,158.46 crore in FY’11

14 Apr 2012 Evaluate

Rashtriya Krishi Vikas Yojana (RKVY) has succeeded in incentivizing States to assign more funds to agriculture and allied sectors. It has emerged as a principal instrument of improvement and revival of agriculture. States allocated 6.04% of State Plan to agriculture in 2010-11 as compared to 4.88% in 2006-07. As such, their Plan contribution to agriculture and allied sector has gone up from Rs 8,770.16 crore in 2006-07 to Rs 22,158.46 crore in 2010-11.

Funds under the scheme are provided to states as 100% grant by central government. Allocation of funds is dependent on additional resources committed by states for agriculture and allied sector in their state plans and the growth projected and generated. In the last five years, States have taken up over 5,290 projects in all segments of agriculture and allied sectors.

RKVY format has also allowed taking up national priorities as sub-schemes while keeping States flexibility of project selection and implementation intact. In all, nine special programmes with focused objectives are being implemented as sub-scheme of RKVY.

Launched in 2007 with a Plan outlay of Rs 25,000 crore for XI Plan, RKVY was created with two strategic objectives - first, to incentivize States to allocate more funds for agriculture and allied sectors and second, to facilitate States to generate additional growth in agriculture and allied sectors by better planning and undertaking appropriate projects to achieve this goal.

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